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What do I need to do in order to get it right with my business' financial management?

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7 answers

1、 Settle the accounts

Accounting is the technical support of enterprise financial management and one of the most basic and important functions of enterprise finance. Whether the basic function of accounting is two function theory (reflection and supervision), three function theory (reflection, supervision and participation in decision-making) or five function theory (reflection, supervision, budget, control and decision-making), the first function is reflection. What is the realization of reflection function, that is, accounting.

Accounting as a management science, but also a hard science, it has a set of strict confirmation, recording, recording and reporting procedures and methods, accounting is to use the way of value to record the business process, reflect business gains and losses, report business results, accounting audit and calculation can only be carried out after the business, so we must pay attention to risk monitoring

2、 Manage cash

In addition to accounting, the most important function of accounting is supervision, accounting supervision is all-round, including all aspects of the enterprise, in which the supervision of enterprise funds is a matter that every enterprise attaches great importance to. For any enterprise, the use and management of funds is a very important thing. Cash is superior to the enterprise, such as people's blood, no, more, less, faster, slower, immobile and sick, which may make the enterprise complete. As a financial department of enterprise value management, its important functions include fund raising, dispatching and supervision, simple and simple In other words, we should manage the "money" of the enterprise well.

  1. Rules

The use and management of funds are different from accounting. There is no strict management method. There are great differences among enterprises. Fund planning, financing, settlement and control all belong to the scope of fund use and management. The nature of enterprises, the amount of funds, accounting policies, credit policies, industry characteristics, preferences of main decision makers, and even the experience of fund scheduling personnel may give enterprises some help The use and management of funds bring about deviation. Through the establishment of enterprise fund management system, the improper use of funds can be prevented to a certain extent. However, to improve the effectiveness of enterprise funds, it is difficult to rely on the system alone. In addition to establishing a set of fund approval and monitoring system suitable for enterprises, it is more necessary to select personnel with certain experience to do this work.

Report 泽广's answer

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Hi Sharon, Make sure you do the following. 1. Record all the money that comes in and goes out. 2. Open a bank account where to deposit all the sales money, withdraw money when there’s business need. 3. Make and keep payment vouchers for each payment made 4. Do not use business money for your own personal expenses, rather pay yourself a salary where you can draw money for personal use. 5. Keep track of every transaction and your business money.

All the best, Bright

Report Bright's answer

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Dear Sharon, I fully second what @bright Asiimwe Wandera has suggested to you.

Her reply Is as much connected to mine.

So, do these;

  • Have a book or spreadsheet to record sales (income)
  • Have a book or spreadsheet to record expense
  • Have a book or spreadsheet where you carry out daily, weekly and monthly account (This will improve transparency in your business)

Report Wisdom's answer

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Thank you all so much for your input. I will definitely follow your advice.

Report Sharon's answer

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Dear Sharon, I second with all the others that have given their advice. Pls try and record all your daily incomes and expenses. This will enable you know your total income per month and enable you know if you are spending more than you are earning.

Report nkechi's answer

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